Products January 31, 2012

Fidelity Launches Online Video Series for Pension Plan Participants

January 31, 2012 (PLANSPONSOR.com) – Fidelity Investments has launched an online video series designed to provide defined benefit pension plan participants with a better understanding of their benefits.
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The library is accessible to all workplace pension plan participants who log on to Fidelity’s participant website NetBenefits under a newly created section called “Pension Tools & Learning.” The section features up to eight new videos that answer key questions for participants including: what is a pension plan versus a 401(k) plan, how do pension benefits grow and when can a participant initiate payments?

In addition, the Pension Tools & Learning section—which is being offered to corporate pension plans nationwide for which Fidelity provides recordkeeping services—includes summary plan descriptions so participants can understand their individual pension plan rules. The site also includes links to various Fidelity retirement planning tools.

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The new video library was produced after a 2011 Fidelity study found that 71% of corporate pension plan participants surveyed did not have detailed knowledge of how their pension plans work and 61% have never inquired about how much money they will receive upon retirement. (See DB Participants Don’t Understand Plans).

Products January 31, 2012

Dalbar Introduces Fee Disclosure Certification Program

January 31, 2012 (PLANSPONSOR.com) – Dalbar has introduced a Fee Disclosure Certification program for the evaluation of plan provider services. 
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The Certification values the intangibles of services, provides an independent evaluation to plan sponsors and creates a critical role for advisers and third-party administrators (TPAs). Service providers with successful plans, high-quality service and active investment management are evaluated on these factors, not just the cost of the offering.

Plan sponsors receive certification that is evidence of the required evaluations, as well as suggestions for improving their plans. Plan sponsors are expected to engage their advisers to implement improvements under separate or existing arrangements.

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Advisers and TPAs receive free online training to support plan sponsors in their evaluations. Advisers and TPAs are expected to charge fees for this additional support since it goes beyond typical arrangements.

“The benefits of Fee Disclosure Certification creates a win, win, win,” said Kathleen Whalen, managing director at Dalbar. “Service providers win by quantifying the value of their services, plan sponsors win by simplifying compliance, and advisers/TPAs create a new service and revenue opportunity.”

Details of the Fee Disclosure Certification is available at www.ERISAFeeDisclosure.com. 

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